Invesco Dynamic Leisure and Entertainment ETF (PEJ)

Invesco Dynamic Leisure and Entertainment ETF (PEJ)

Profile:

The Invesco Dynamic Leisure and Entertainment ETF (PEJ) is a thematic ETF that invests in companies engaged in the leisure and entertainment industry. This includes companies involved in movies, gaming, hospitality, travel, and other related sectors. PEJ employs a dynamic asset allocation strategy, adjusting its holdings based on quantitative models and market trends. This approach aims to capture opportunities across various sub-sectors within the leisure and entertainment industry.

Objective:

The primary investment goal of PEJ is to seek capital appreciation by investing in a portfolio of companies within the leisure and entertainment industry. The ETF aims to outperform its benchmark, the S&P 500 Index, over the long term.

Issuer:

Invesco is a global investment management firm with over $1.4 trillion in assets under management (as of October 2023). Invesco is known for its diverse range of investment products, including ETFs, mutual funds, and alternative investments.

Reputation and Reliability:

Invesco has a strong reputation in the industry, with a long history of providing investment solutions to individuals and institutions. The firm consistently receives high ratings from independent research firms for its investment performance and customer service.

Management:

PEJ is managed by a team of experienced portfolio managers with expertise in the leisure and entertainment industry. The team employs a research-driven approach to identify investment opportunities and manage the ETF's portfolio.

Market Share:

PEJ has a market share of approximately 0.5% within the leisure and entertainment ETF category.

Total Net Assets:

As of October 2023, PEJ has total net assets of approximately $450 million.

Moat:

PEJ's competitive advantages include its dynamic asset allocation strategy, which allows it to adjust its holdings to capture opportunities across various sub-sectors within the leisure and entertainment industry. Additionally, the ETF benefits from Invesco's expertise and resources in the investment management industry.

Financial Performance:

Since its inception in 2007, PEJ has delivered an annualized return of approximately 10%, outperforming the S&P 500 Index. However, past performance is not indicative of future results.

Growth Trajectory:

The leisure and entertainment industry is expected to continue growing in the coming years, driven by factors such as rising disposable income, technological advancements, and increased demand for leisure activities. This growth potential could benefit PEJ's performance.

Liquidity:

PEJ has an average daily trading volume of approximately 100,000 shares, making it a relatively liquid ETF. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

The leisure and entertainment industry is affected by various factors, including economic conditions, consumer preferences, and technological advancements. Investors should consider these factors when evaluating PEJ's investment potential.

Competitors:

Key competitors of PEJ include:

• VanEck Vectors Video Gaming and eSports ETF (ESPO)
• Global X Video Games & Esports ETF (HERO)
• First Trust NASDAQ Global Auto Index Fund (CARZ)

Expense Ratio:

The expense ratio for PEJ is 0.60%.

Investment Approach and Strategy:

PEJ employs a dynamic asset allocation strategy, investing in a diversified portfolio of companies within the leisure and entertainment industry. The ETF's holdings are adjusted based on quantitative models and market trends.

Key Points:

• Invests in companies within the leisure and entertainment industry.
• Employs a dynamic asset allocation strategy.
• Seeks capital appreciation.
• Outperformed the S&P 500 Index over the long term.
• Has a market share of 0.5% within the leisure and entertainment ETF category.
• Has total net assets of approximately $450 million.

Risks:

• The leisure and entertainment industry is cyclical and can be affected by economic downturns.
• PEJ's dynamic asset allocation strategy could lead to higher volatility than traditional ETFs.
• The ETF is subject to market risk, including changes in interest rates and inflation.

Who Should Consider Investing:

PEJ is suitable for investors who:

• Seek exposure to the leisure and entertainment industry.
• Are comfortable with a higher level of volatility.
• Have a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis of PEJ's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10.

This rating is driven by PEJ's strong track record, experienced management team, and dynamic asset allocation strategy. However, investors should be aware of the risks associated with the leisure and entertainment industry and the ETF's higher volatility.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Invesco website
• Morningstar
• ETF.com

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.